Here's what to do if SARS rejects your application for a tax debt compromise
Your company is in financial distress. As a result, you apply for a tax debt compromise so SARS can 'park' your outstanding tax debt and treat the debt as no longer due and payable.
After sending in your application and holding endless meetings with SARS, it rejects your application. What happens now?
Read on to find out what to do if SARS rejects your application for a tax debt compromise.
Before we get to what you must do, take a look at what happens if SARS denies your tax debt compromise application
If SARS denies your tax compromise
application, unfortunately, the matter will revert to where it was before the tax compromise process began. This means:
Your tax debt is still due in full;
SARS might immediately seek other action against you. For example, you may have to go through a SARS audit;
Now let's take a look at what you must do about this unfortunate situation.
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Do this if SARS rejects your application for a tax debt compromise
If SARS rejects your application for a tax debt compromise, apply again.
There's no limit to the number of compromises you can apply for.
Experts behind the Practical Tax Loose Leaf Service
say, no matter how many times SARS turns you down, don't give up on the tax compromise if you believe and can prove that the compromise will make the best of a bad situation that both you and SARS find yourselves in.
Here's the bottom line: Don't sit back if SARS rejects your application for a tax debt compromise. Do what's in your power to get SARS to accept your application so you can effectively deal with the tax debt you're battling with.
PS. Find out how to take the hassle out of tax, audit-proof your business and make the Receiver your friend!
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